HomeMy WebLinkAboutMINUTES - 03231993 - 2.1 TO: BOARD OF SUPERVISORS �E L Contra
c
FROM:
Costa
Phil Batchelor, County Administrator
County
DATE: March 23, 1993
SUBJECT: City Council Resolutions Opposing the Use of Local
Property Tax to Balance State Budget Deficit
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS :
Acknowledge receipt of city council resolutions and authorize
letter of appreciation to Mayors and Council members for joining
the local revolt to protest the Governor' s proposed budget and
urging members of the Assembly and Senate to exhaust other methods
to balance the State' s deficit.
BACKGROUND:
In early February you authorized the Chair of the Board to direct
a letter to the Mayors and all City Councils in Contra Costa County
to join the local coalition of business and labor to request the
Governor and members of the Assembly and Senate of the State
Legislature to exhaust other methods to balance the State budget
deficit. Rather than taking local property tax away from essential
local services that have historically benefited from the property
tax, the State has at least two other options of cutting State
spending on non-essential services and closing state tax loopholes .
Mayors and Council members from East, West, South and Central
County regions have overwhelmingly responded to this call for help
by adopting resolutions and letters opposing the proposed transfer
and shift of local property taxes from cities, counties and special
districts to balance the State deficit.
Attached are copies of typical responses and recommendations from
San Ramon, Hercules and Pittsburg.
CONTINUED ON ATTACHMENT: YES SIGNATURE:
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTE
APPROVE OTHER
SIGNATURE(S):
ACTION OF BOARD ON TM' a r C YC Z 3TC O O APPROVED AS RECOMMENDED X OTHER
VOTE OF SUPERVISORS
X I I I HEREBY CERTIFY THAT THIS IS A TRUE
UNANIMOUS(ABSENT ) AND CORRECT COPY OF AN ACTION TAKEN
AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD
ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN.
ATTESTED March 23, 1993
Contact: PHIL BATCHELOR.CLERK OF THE BOARD OF
cc: County Administrator SUPERVISORS AND COUNTY ADMINISTRATOR
BY DEPUTY
-2-
The proposed transfer of $2 . 6 billion comes on top of $1 . 3 billion
worth of local property taxes that were transferred by the State
last year! The current State proposal will have a devastating
impact on the ability of cities and counties to provide fire,
police, library and other essential local services . Closing State
loopholes and cutting non-essential State spending is a more
prudent course of action than stealing local property tax dollars
and eroding local essential services .
The following cities have either adopted or listed resolutions for
action and are ready to join in the fight to protect our local
property tax base:
East County Cities
Antioch
Brentwood
Pittsburg
Central County Cities
Concord
Orinda
Pleasant Hill
Walnut Creek
South County Cities
Danville
San Ramon
West County Cities
E1 Cerrito
Hercules
Pinole
Richmond
San Pablo
The strong response and support from Mayors and members of City
Councils from every geographic region of the County is gratifying.
A letter thanking them for joining the coalition of taxpayers,
business and labor in this fight to protect our local property tax
and inviting them to participate in the campaign this spring to
stop the State should be authorized.
- Can5t'c1,,-_-r wc�k a _ 1
City car' Pittsburg
Civic Center • P.O. Box 1518 • Pittsburg, California 94565
!/
[ MR4 1 1%
CLERK BOARD OF SUPERVISORS
CONTRA COSTA CO.
March 9, 1993
The Honorable Tom Torlakson
Chairperson, Board of Supervisors
Contra Costa County
651 Pine Street
Martinez, Ca. 94553
Dear Chairperson Torlakson:
Enclosed is a certified copy of Resolution No. 93-7901,
"Urging the Governor to Cut State Spending and Close Loopholes In
Lieu of Shifting Local Property Taxes from Cities, Counties and
Special Districts. " This resolution was approved by the Pittsburg
City Council at their meeting held March 1, 1993 .
Our resolution urges Governor Pete Wilson and other
legislators to find other avenues to balance the State budget
deficit rather than taking existing local property taxes away which
affect vital local services. Your support in promoting the
concerns of our council regarding the maintenance of our current
level of services and retaining our current property tax levels
would be very much appreciated.
Ver truly yours,
Li lian J. ide
Assistant City Manager/
City Clerk
LJP: jg
Enclosure
cc; :8wrd 0) x6er3
CA90
League of California Cities Helen Putnam Award-1988
National Center for Public Productivity Exemplary Award-1989
City of New Horizons
Before the City Council of the City of Pittsburg
In the Matter of:
Urging the Governor to Cut State )
Spending rind Close Loopholes )
In Lieu of Shifting Local Property ) Resolution 93-7901
Taxes from Cities, Counties, and )
Special Districts )
WHEREAS, Governor Pete Wilson has proposed shifting $2.6 billion in local property taxes
from cities, counties and special districts to other state purposes; and
WHEREAS, the impact of this irresponsible proposal will take away approximately $25 mlllon
or 55% of the remaining property tax in the nine county governed fire districts; and
WHEREAS, the magnitude of this loss will. force severe reduction of local public protection
including the laying off of fire fighters and closing of fire stations unless local replacement
revenue is provided; and
WHEREAS, the impact of closed stations and reduced fire fighters would increase response time
endangering lives and property and increase fire insurance costs.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Pittsburg, Contra
Costa Cou11ty, California, that it urgently requests the Governor and members of the Assembly
and Senate of the State Legislature to exhaust other methods to balance the State of California
budget deficit such as cutting state spending and closing loopholes rather than by taking existing
local property taxes away from essential local sei;vices that have historically benefitted from the
property tax.
BE I"T' FUR'T'HER RESOLVED, that copies of this resolution be sent to Governor Peter Wilson,
the I_eoislativc Leadership and Members of the Contra Costa COUnty Legislative Delegation.
PASSED AND ADOPTED, by the City Council of the City of Pittsburg, at a regular meeting
duly held thereof, on theltt, day of Parch 1993, by the following vote:
AYES: Councilperson Canciamilla, Currie, Davis , Erbez and Mayor Lewis
NAYS: None
ABSENT: None
ABSENT: None
7 �
�4� L:�
Robert 1'. _ewis, Mayor
Attest:
l Lill n J. Prid lyi.ty Clerk
Page 2 of 2 Resolution 93-7 901
STATE OF CALIFORNIA
COUNTY OF CONTRA COSTA
CITY OF PITTSBURG
I , Janet Gunter Deputy City Clerk in and
for said City of Pittsburg, County of Contra Costa, State of
California, do hereby certify that the hereto attached and
foregoing paper is a full, true and correct copy of
Resolution 93-7901 now on file in this office
of said City now in my custody.
WITNESS, my hand, and Official Seal, this 9th day
of March , 19 3
Deputy i y Clerk in and for the City of
P ttsburg, Contra Costa County,
California
City of Pittsburg
Civic Center • P.O. Box 1518 • Pittsburg.California 94565RECEIVED-71
i
f
MAR t 1 1993 `
CLERK BOARD OF SUPERVISOR;
CONTRA COSTA CO.
March 9, 1993
The Honorable Tom Torlakson
Chairperson, Board of Supervisors
Contra Costa County
651 Pine Street
Martinez, Ca. 94553
Dear Chairperson Torlakson:
Enclosed is a certified copy of Resolution No. 93-7901,
"Urging the Governor to Cut State Spending and Close Loopholes In
Lieu of Shifting Local Property Taxes from Cities, Counties and
Special Districts. " This resolution was approved by the Pittsburg
City Council at their meeting held March 1, 1993 .
Our resolution urges Governor Pete Wilson and other
legislators to find other avenues to balance the State budget
deficit rather than taking existing local property taxes away which
affect vital local services. Your support in promoting the
concerns of our council regarding the maintenance of our current
level of services and retaining our current property tax levels
would be very much appreciated.
Ver truly yours,
Li lian J. ide
Assistant City Manager/
City Clerk
LJP: jg
Enclosure
CC; BCYtrd (YL--inb-rs
C490
League of California Cities Helen Putnam Award-1988
National Center for Public productivity Exemplary Award-1989
City of New Horizons
Before the City Council of the City of Pittsburg
In the Matter of:
Urging the Governor to Cut State )
Spending and Close Loopholes )
In Lieu of Shifting Local Property ) Resolution 93-7901
Taxes from Cities, Counties, and )
Special Districts )
WHEREAS, Governor Pete Wilson has proposed shifting $2.6 billion in local property taxes
from cities, counties and special districts to other state purposes; and
WHEREAS, the impact of this irresponsible proposal will take away approximately $25 millon
or 55% of the remaining property tax in the nine county governed fire districts; and
WHEREAS, the magnitude of this loss will force severe reduction of local public protection
including the laying off of fire fighters and closing of fire stations unless local replacement
revenue is provided; and
WHEREAS, the impact of closed stations and reduced fire fighters would increase response time
endangering lives and property and increase fire insurance costs.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Pittsburg, Contra
Costa County, California, that it urgently requests the Governor and members of the Assembly
and Senate of the State Legislature to exhaust other methods to balance the State of California
budget deficit such as cutting state spending and closing loopholes rather than by taking existing
local property taxes away from essential local services that have historically benefitted from the
property tax.
BE IT FURTHER RESOLVED, that copies of this resolution be sent to Governor Peter Wilson,
the Legislative Leadership and Members of the Contra Costa County Legislative Delegation.
PASSED AND ADOPTED, by the City Council of the City of Pittsburg, at a regular meeting
duly held thereof, on thelttq day of r.arch 1993, by the following vote:
AYES: Councilperson Canciamilla, Currie, Davis , Erbez and Mayor Lewis
NAYS: None
ABSENT: None
ABSENT: None
Robert T. Lewis, Mayor
Attest:
t
ill' n J. Prid , ity Clerk
Page 2 of 2 Resolution 93-7 901
STATE OF CALIFORNIA
COUNTY OF CONTRA COSTA
CITY OF PITTSBURG
I, Janet Gunter Deputy , City Clerk in and
for said City of Pittsburg, County of Contra Costa, State of
California, do hereby certify that the hereto attached and
foregoing paper is a full, true and correct copy of
Resolution 93-7901 now on file in this office
of said City now in my custody.
WITNESS, my hand, and Official Seal, this 9th day
of March , 19 3
Deputyi y Clerk in and for the City of
Yttsburg, Contra Costa County,
California
S'+
n..
uosia vv: .
RECEIVED
CITY OF HERCULES
VAR 8® 199
CITY COUNCIL AGENDA SUMMARY
Office of
County ,Administrator
TO: Honorable Mayor and Members of the City Council
FROM: Marilyn E. Leuck, City Manage
FOR: Regular City Council Meeting of arch 23, 1993
SUBJECT: Adopt Resolution Opposing the Use of Local Property Tax to Balance the
State of California's 1993-94 Budget.
BACKGROUND:
Since FY 1990-91, the State of California has taken actions which erodes city
governments' fiscal health either by delegating new responsibilities without funding
or by transferring local revenue to Counties or to the State.
By example, the State Workers Compensation law has become significantly more
liberal in its thresholds and categories for payment and in the amounts to be paid by
cities. The Legislature has also mandated programs such as Solid Waste Management
(AB 939) or strengthened regulatory and compliance laws pertaining to clean air,
water and land use, all without State funding. In addition, cities now pay County
booking fees for prisoners and pay the State a portion of our City property-tax and
the Redevelopment Agency tax increment --- just because the State needs the
money.
Revenue "Shifts" by the State Since 1990
For the City of Hercules
xx
0o p; ax igarette: Vehicle.:.:.
Property.
.
Fees dmin.:'Fee:..:: : :::::;:;:::Tax::. Code Fines.: :. 'Tax Shift.:.
1990-91
City - $10,989 $3,500 - -
RDA - $10,580 - - -
1991-92
City $11,049 $11,855 $10,000 $15,000 -
RDA - $10,377 - - -
1992-93
City $12,000 $11,500 $20,000 $18,000 $66,500
RDA - $14,621 - - $110,752
523,049 569,922 $33,500 533.000 $177,252
TOTAL - All Categories - $336,723
DISCUSSION:
The Governor is now proposing to "shift" $2.6 billion in Local Property tax from
Cities, Counties and Special Districts to other State purposes. This approach is an
extension of last year's taking of the property tax and tax increment. To some
extent, it is based on the false (but "marketable") idea that the State has been
subsidizing local government since the adoption of Prop 13 in 1978. In fact, the
State should be "subsidizing" County government because a county is a "creature
of the State." The threat to discontinue the "Proposition 8" property tax subsidy
to cities continues to be a deliberate misrepresentation. Prop 8 money, received by
cities, was a permanent replacement of revenue to cities by the State following Prop
13. It was never a subsidy and it was never "temporary."
The property tax shift would take $25 million, i.e. , 55% of the property tax away
from the nine fire districts, one of which is the Rodeo/Hercules Fire District. It
would reduce the City of Hercules property tax revenue from a low estimate of
$175,000 to as much as $500,000. (The League of Cities methodology is based on
averages, hence the $175,000. When this City's growth factor is applied to Prop 8
funds, the amount of potential loss is as much as $500,000) . Such a loss will
significantly affect daily services. The City has already cut its budget, deferred
service needs, withheld salary raises and has raised its own revenue in order to
maintain this community as we know it.
The question is continually raised "Why doesn't the State develop a long-term
financial restructuring." In fact they have. It is called "Incrementalism."
The State continues to incrementally add more and more responsibilities on cities,
counties and special districts without the revenue and it legislates away local
revenues designed for local services.
Contra Costa County appears poised to undertake a strong position of opposition to
the Governor's Plan. They are recruiting the Cities and Special Districts to join
forces in a unified front in order to force the Governor and State Legislature
to develop its own resources and cut its own services, something that it has not fully
done in past years.
City staff has indicated that the probability for Hercules support for this position
is good, pending City Council action. However, staff has also cautioned the County
that it should not pursue other legislation that is harmful to cities and the county
needs to seriously pursue new County revenue opportunities just as the cities have
done.
FISCAL IMPACT:
The act of adopting or not adopting the Resolution has no direct fiscal impact.
ALTERNATIVES:
1. Do not adopt.
2. Modify this Resolution.
RECOMMENDATION:
1. Adopt the Resolution.
ATTACHMENT(S):
Resolution
PRIMARY PARTIES RECEIVING REPORT:
Supervisor Jeff Smith
Assistant County Administrator Scott Tandy
MEL:dml
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RECEIVED 1983 1993
I
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FEB Z 21993 ,q a`
San Ramonc1tv C1
°
° San [amcn
CLERK BOARD OF SUPERVISORS
CONTRA COSTA CO.
CITY OF SAN RAMON r.o BOX 5 222z c.AA514 R.AA10�'
8
S.A.\R.AMON.C.ALIFOrNI.A 94583
(510;275-2200
FAX:1510)866-1436
February 16, 1993
Tom Torlakson, Chairman
Contra Costa County Board of Supervisors
County Administration Building
651 Pine Street, Room 106
Martinez, CA 94553
Dear Chairman Torlakson:
Thank you for taking time to include the City of San Ramon amongst
the cities in our fine county who will help deliver the message of
our collective fiscal dilemma. to the State Capitol . While this
City wishes to and does support your efforts in making this State's
leaders aware of the impacts tax shifts will have upon the ability
of fire districts to operate, we have a need to also remind them of
.San Ramon's unique situation.
The City of San Ramon is served by two fire agencies, one a Fire
Protection District and one a Joint Powers Authority between this
City and the City of Dublin in Alameda County with each of the
jurisdictions serving approximately one-half of the City area. For
the many years that this situation has existed, all of our citizens
have paid essentially the same for fire protection services. and
received essentially the same level of service. Faced with this
State's current proposal to withdraw funds, the residents of this
City are faced with the possibility of differing costs for the same
levels of service or differing levels of service for the same costs
or some other combination of costs and service levels which are
unequal.
While you share with this State's leaders our concern over the fire
district's loss of property tax, ask them to reflect upon the
plight of this City and its residents who have worked hard to keep
fire protection costs down and service levels appropriate.
cc : C40
CITY COUNCIL:275.2330 ADMINISTRATIVE SERVICES:275.2323 POLICE:275.2270 ENGINEERING:275-2250
CITY MANAGER:275-2330 PUBLIC SERVICES:275.2260 PARKS 6 COMMUNITY SERVICES:275-2290 PLANNING:275-2210
CITY CLERK:275-2350 TRANSPORTATION:275.2230 COMMUNITY CENTER:275-2300 BUILDING INSPECTION:275-2220
SENIOR CENTER:275-2316 REDEVELOPMENT:275.2280
Please feel free to contact me if this City can be of further
assistance.
Sincerely,
A tea"
Patricia Boom
Mayor
PB/sfb
cc: Governor Wilson
Senator Dan Boatwright
Congressman Bill Baker
Assemblymember Johan Klehs